Supplement dated July 16, 1997
to the Prospectus dated May 1, 1997 for The Guardian Investor
The following supplemental information should be read in conjunction with
the Prospectuses dated May 1, 1997 for the Individual Deferred Variable Annuity
Contracts and Group Deferred Variable Annuity Contracts issued by The Guardian
Insurance & Annuity Company, Inc. ("GIAC") through The Guardian Separate Account
D and marketed under the name "The Guardian Investor."
New Variable Investment Options
Two new investment options have been added to the Contracts and are
available both for the allocation of premiums from new Contractowners and
transfers of account values by existing Contractowners. All references
throughout the Prospectuses to the variable investment options available under
the Contracts shall be modified to reflect the addition of these two new funds.
The Guardian Small Cap Stock Fund
The investment objective of The Guardian Small Cap Stock Fund ("Small Cap
Fund") is long-term growth of capital. The Small Cap Fund invests primarily in a
diversified portfolio of common stocks and convertible securities issued by
smaller companies. Smaller companies will be defined as companies whose total
market capitalization places them within the range of issuers included in the
Russell 2000 Index.
Guardian Investor Services Corporation, a wholly owned subsidiary of GIAC,
serves as investment adviser and principal underwriter of the Small Cap Fund.
Charles E. Albers, CFA and Larry Luxenberg, CFA share portfolio management
responsibility for the Small Cap Fund. The Small Cap Fund pays GISC an
investment management fee at an annual rate of 0.75% of its average daily net
assets.
The MFS Growth With Income Series
The investment objective of the MFS Growth With Income Series ("Growth
With Income Series") is reasonable current income and long-term growth of
capital and income. The Growth With Income Series invests primarily in a
diversified portfolio of equity securities of companies that are believed to
have long-term prospects for growth and income.
The Growth With Income Series is advised by Massachusetts Financial
Services Company ("MFS"), 500 Boylston St., Boston, MA. MFS is registered as an
investment adviser under the Investment Advisers Act of 1940 (the "Advisers
Act") and is a subsidiary of Sun Life of Canada (U.S.), which is itself an
indirect wholly owned subsidiary of Sun Life Assurance Company of Canada. Kevin
R. Parke and John D. Laupheimer share portfolio management responsibility for
the Growth With Income Series. As compensation for its services to the Series,
MFS receives a fee, payable monthly, at an annual rate of .75% of the Series'
average daily net assets.
A more detailed description of the Small Cap Fund and the Growth With
Income Series, their investment objectives, policies, investment managers, asset
charges and the risks associated with investing in small cap, foreign and
emerging market securities may be found in the accompanying prospectuses. Read
the prospectuses carefully before investing.
The following information supplements, and should be read in conjunction
with, the "Expense Table" found on pages 5-6 of the Individual Contracts
Prospectus and pages 6-7 of the Group Contracts Prospectus. This information is
provided in order to assist Contractowners in understanding the various costs
and expenses that an investor in the Small Cap Fund or the Growth With Income
Series can expect to bear directly or indirectly under the Contracts. Apart from
the management fee, the figures for the Small Cap Fund are estimates, since the
Fund has only recently commenced operations, and thus, these amounts should not
necessarily be considered to be representative of current or future expenses.
Actual expenses for the Small Cap Fund may be greater or less than those shown
below.
<PAGE>
Fund Annual Expenses:*
(as a percentage of average net assets)
Total Fund
Other Operating
Management Expenses Expenses
Fees (after waiver) (after waiver)
The Guardian Small Cap Stock Fund .75% .95% 1.70%
MFS Growth With Income Series .75% .25% 1.00%
* The percentages for The Guardian Small Cap Stock Fund are estimated, since
the Fund has not yet commenced operations. The Adviser of MFS Growth With
Income Series has agreed to bear expenses for the Series, subject to
reimbursement by the Series, such that the Series' "Other Expenses" shall
not exceed 0.25% of the average daily net assets of the Series during the
current fiscal year. Otherwise, "Other Expenses" and "Total Fund Operating
Expenses" for the Series would be 1.32% and 2.07%, respectively.
Comparison of Contract Expenses Applicable to Small Cap Fund and Growth With
Income Series For Single Premium (SP) and Flexible Premium (FP) Payment
Individual Contracts and Group Contracts (GC).
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender or you
at the end of the applicable annuitize at the end of the
time period: applicable time period:
You would pay the following You would pay the following
expenses on a $1,000 investment, expenses on a $1,000 investment,
assuming a 5% annual return on assuming a 5% annual return on
assets: assets:
Single Premium and Flexible Single Premium and Flexible
Premium Contracts Premium Contracts
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1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
THE GUARDIAN SMALL CAP $91SP $144SP $31SP $94SP
N/A N/A N/A N/A
STOCK FUND $91FP $154FP $31FP $94FP
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$90GC $152GC N/A N/A $30GC $92GC N/A N/A
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MFS GROWTH WITH INCOME $83SP $122SP $154SP $265SP $23SP $72SP $124SP $265SP
SERIES $83FP $132FP $184FP $265FP $23FP $72FP $124FP $265FP
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$83GC $130GC $180GC $258GC $23GC $70GC $120GC $258GC
</TABLE>
These Funds may not be available in all states.
This Supplement should be retained with the Prospectus for future reference.
